Microsoft lowers Windows Vista retail prices

In an attempt to boost sales of its absurdly overpriced Windows Vista that is missing some of the most exciting features originally were promised, Microsoft has decided to slash the prices on the premium versions of its latest operating system.

The Redmond, Washington-based Microsoft said it plans to drop prices for retail copies of Windows Vista up to almost 50% for certain editions in poorer countries as it attempts to convince more users there to use genuine software.

In its home market, Microsoft is cutting prices only on the higher-end versions of Vista, and only for the Premium and Ultimate upgrade version of the software used to move from XP or another copy of Vista.

In the United States, the suggested price for Vista Ultimate, which includes nearly all Vista features, including Aero and Windows Media Center, drops from $399 to $319 for the full version, and for the upgrade from $299 to $219. The Home Premium version falls to $129, from $159.

Vista price cut will apply globally, but prices will vary from region to region. Customers in some developed countries will see cuts as small as three percent, while in other regions Vista's cost may be cut nearly in half or none at all.

"The vast majority of our retail customers — especially those in developed markets — may not notice anything different from the promotions they've already seen in their region," according to a company spokeswoman. "This is really about formalizing promotions we've run with several partners already to continue to grow our retail business."

According to Brad Brooks, the new corporate vice president for Windows consumer product marketing, however, the price cuts will arrive with the retail release of Windows Vista Service Pack 1 later this year, but some markets will see reduced prices sooner through promotions such as one with online heavyweight Amazon.com in the U.S.

Surprised by Microsoft's unprecedented move, analyst Chris Swenson who tracks retail software sales for NPD Group said, "I can't remember a big price cut like this, it's very unheard of."

"I think this is a smart strategic move," he continued. "Vista hasn't hit their initial expectations."

Windows Vista, company's first new operating system in five years, is donned with a number of features, including Windows Aero, a redesigned user interface, a new Window Shell, consisting of improved filtering, sorting and grouping, and a Windows Sidebar, a panel on the side of the screen where the user can place desktop gadgets.

Launched on January 30, 2007 for consumers, Vista had attracted more than 20 million consumers worldwide in its debut month to buy the licenses. Vista for commercial clientele was launched in November, 2006.